Sam’s Club Auto Program vs Costco
There are a lot of factors when it comes to buying a vehicle or maintaining your vehicle. Sam’s Club and Costco’s Auto programs aim to both make these processes easier and more cost-effective. But with two companies which are both huge and offer seemingly the same thing, which one is better?
Because you must be a member of these to buy from them, the easiest solution to this is to use the company to which you are already a member. However, if you are not a member or you are a member of both, you will need to take a deeper look.
The short and skinny of it is that Costco will generally give you a wider variety of options, whereas Sam’s Club will often save you more money. Both of these facts are subject to change depending on your area.
What is Sam’s Club?
With two companies so closely matched, we need to take a deeper dive into each to understand them better, let’s investigate Sam’s Club first. Sam’s Club was founded 38 years ago on April 7th, 1983. Though the company is relatively young it has a historical backing as it was founded and owned by Sam Walton, the same man who founded Walmart.
The company operates around 600 stores Proving that it is a reputable company and that members can rely on it. Sam’s Club’s membership allows customers to shop at their stores at retail value. Sam’s Club is partnered with TrueCar to help you find the best deal for your next new or used vehicle.
What is Costco?
Originally Costco was founded as Price Club in San Diego on the 12th of July 1976. Later, in 1983 the company was bought out and renamed Costco and the headquarters was moved to Seattle Washington.
Today Costco is number ten on the fortune 500 rankings, is the fifth-largest retailer in the world, and is the largest Wearhouse club. They have over 800 stores and are constantly expanding. Costco has its very own auto program and does not use TrueCar.
What Do the Clubs Offer and What Are the Main Differences Between Them?
Sam’s Club and Costco offer similar services when it comes to buying a vehicle. They both strive to make the entire process easier and more affordable. They do this by employing two main methods.
Frist both companies have agreements with dealerships that Club members are not charged above MSRP. MSRP stands for the manufacturer’s suggested retail price. Dealerships are not required to sell vehicles at the MSRP, as it states in the name, it’s only a suggested price.
Additionally, dealerships often pay far less than the MSRP for vehicles from the manufacturer, which means they still make a profit, even if they sell the vehicle under the MSRP. Because of this, Sam’s Club and Costco can be the middleman for you and get a lower price than the MSRP.
You could do your own haggling, and you might even get a better deal, however, going through one of the Wearhouse chains makes it a whole lot easier. But with two choices so closely matched, we need to take a deeper look at what they offer.
Pricing
Pricing is probably the biggest factor when buying your next vehicle. Both companies will never charge you above the MSRP, which is a good start, but which company will save you more?
Typically, Sam’s club will save you more money in the end. In 2020 Costco save their members an average of $1,000 off the MSRP, which is pretty good, but Sam’s club had them beat. On average, Sam’s Club saved members $3,463 from the MSRP.
So, on average, Sam’s Club will save you more money than Costco, however, it is not as cut and dry as it might seem. Sam’s Club does save you money, but its process is a little more complicated than Costco’s. All of Costco’s prices are set, you simply need to go on their website, find the car you want, and you will be given its price right then and there.
If you want to buy a vehicle through Sam’s Club you need to provide an E-mail address, name, phone number, and physical address. After which an agent will contact you directly. This is a bit of a hassle; however, you get the best prices because it is personalized to you.
Vehicle Maintenance Reimbursement
Once again Sam’s Club and Costco are very closely matched in this category. They both offer a percentage off of parts and services. Sam’s Club offers a 20% reimbursement on vehicle repairs. Their plan covers up to $500 of reimbursement, twice a year.
Costco’s Reimbursement percentage is a little less at 15% and covers up to $500 on services, parts, and accessories. 15% is not all that different from 20%, however, Costco’s big difference is that the $500 can be used on every visit.
If you have regular maintenance done on your vehicle, then Costco will save you more money in the long run. That being said, Sam’s Club has another card up its sleeve. Sam’s Club will reimburse you up to $500 on insurance deductibles when you file a claim, also up to twice a year.
So, if you have an accident, you will probably save more money through Sam’s Club. Personally, I prefer Costco’s offer because I like to maintain my vehicles as much as possible.
Additional Factors
With the competition so tight between the two companies we need to take an even more detailed look at what they offer. First up is variety, the bigger the selection the better. Costco takes the cake on this one. They have a much larger variety to choose from, though Sam’s Club is not too far behind.
Next is availability, Costco again has more availability. This is no surprise as they have more stores in general, but they also operate in more states than Sam’s club does. Additionally, Sam’s Club’s Vehicle Maintenance Reimbursement program cannot be used in New Hampshire or New York.
Costco also offers special deals and incentives. For example, at the time this article was written, Costco was offering a Limited-Time special on the 2022 Audi A8. They offered a $5,000 incentive, which is a far larger saving than Sam’s club’s average of around $3,000.
Brands Which Each Company Sells
When looking at which brands both companies offer, we once again see just how close this battle is. They both have the same number of brands offered; however, Sam’s Club offers Lotus vehicles whereas Costco offers Hyundai vehicles.
Sam’s Club |
Costco | ||
Acura |
Alfa Romeo |
Acura |
Alfa Romeo |
Audi |
BMW |
Audi |
BMW |
Buick |
Cadillac |
Buick |
Cadillac |
Chevrolet |
Chrysler |
Chevrolet |
Chrysler |
Dodge |
FIAT |
Dodge |
FIAT |
Ford |
Genesis |
Ford |
Genesis |
GMC |
Honda |
GMC |
Honda |
INFINITI |
Jaguar |
Hyundai |
INFINITI |
Jeep |
Kia |
Jaguar |
Jeep |
Land Rover |
Lexus |
Kia |
Land Rover |
Lincoln |
Lotus |
Lexus |
Lincoln |
Maserati |
Mazda |
Maserati |
Mazda |
Mercedes-Benz |
MINI |
Mercedes-Benz |
MINI |
Mitsubishi |
Nissan |
Mitsubishi |
Nissan |
Porsche |
Ram |
Porsche |
Ram |
Subaru |
Toyota |
Subaru |
Toyota |
Volkswagen |
Volvo |
Volkswagen |
Volvo |
Customer Service
Customer service reviews are about the same across the board. The major complaint I have seen online is that local dealerships often have better deals after some haggling and that Costco and Sam’s Club won’t match these prices.
The main thing Costco and Sam’s Club are selling through their auto program is convenience. They compile a selection of vehicles for you and do the haggling. The main downside to this is location. If you do not live in a larger city, you might have to travel some distance.
If you are picky about your vehicle like me then you know this, but that being said it will probably be easier to use a local dealership if it is convenience, you are looking for. Remember, you can always do your haggling for yourself, instead of relying on a company.
Value
Value goes beyond just the price, cheaper isn’t always the best option. Determining which option will give you the most value for your money, when it comes to these industry giants, is not easy.
Sam’s Club will most likely give you a bigger saving, and though they offer a higher percentage of maintenance, Costco is easier to shop through and their maintenance program gives you more usage overall.
Though it is extremely close to call, Costco comes out on top, aided by the fact that they have more locations. That being said, if you are already a Sam’s Club member and not a Costco member, it probably won’t be worth the switch.
Use Sam’s Club If
- You are already a member
- You have a low amount of maintenance done on your vehicle
- You do most of your own vehicle maintenance
- You want a discount on your insurance deductible
Use Costco If
- You are already a member
- You have maintenance done than twice a year or your vehicle
- You want a smoother process
Conclusion
To sum it all up, these two companies offer almost identical deals. Sam’s Club is a little cheaper, but there are more steps involved. Costco is a little simpler and their maintenance reimbursement program covers you more than twice a year.